In the art of video cassette recorders using either the VHS or BETA format, it is common for owners of the recorders and players to rent video tape cassettes having prerecorded video programs or materials such as a variety of movies. Usually, the cassette rental stores purchase the prerecorded tape cassettes either directly or indirectly from the owners of the programs or materials such as from motion picture studio companies. It is not uncommon for a rental store to rent a video tape cassette with prerecorded material to dozens of customers each of whom may pay from $1.00 to $4.00 per day for renting the prerecorded video tape cassette. While cassette rental customers have the option to purchase a prerecorded tape cassette at a price, for example, between $30.00 and $70.00, it has been found that most customers desire to rent a prerecorded tape cassette for a short period of time. After the rental period, the prerecorded tape cassette is returned to the rental store.
A dispute has arisen between the copyright owners of prerecorded programs or materials and the owners of the video tape cassette rental stores. The owners of the copyrights believe they should receive a copyright royalty from the owner of a rental store whenever a prerecorded recorded video tape cassette is rented to a customer. However, the existing U.S. Copyright Act of 1976 does not provide for any such payment. Thus substantial time, money and effort has been expended towards convincing the United States Congress that the Copyright Act requires an amendment to provide for payment of a copyright royalty whenever a tape cassette is rented with prerecorded copyright material. In this manner, the amount of use of prerecorded material would be reflected in the amount of payment of copyright royalties.